PSINet has six months left despite $300m boost

Cash-strapped ISP PSINet is to sell its electronic commerce data unit, PSINet Transaction Solutions, for $300m in a last ditch effort to raise capital.

The US ISP is selling the business unit to VC firm GTCR Golder Rauner. The company has also sold part of its consultancy division, PSI Global Solutions, but did not release the terms of the deal. However, analysts say that even with proceeds from the sale the company only has enough money to survive a further six months. The company has already admitted in a statement that it will have to renegotiate some of its $4.6bn debt repayment to avoid default. PSINet has also been hit by a lawsuit this week, alleging that the company lied about its cashflow, failed to disclose financial problems, and was irresponsible in its $2bn acquisition of internet consulting firm Metamor.